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Saturday, October 4, 2008

Market Break - Collusion in the MLB?

As the 2008 baseball season is more than halfway over, it does so without its biggest name and most infamous star. Barry Bonds, consolidation debt management money 762 career home runs put him atop the career long-ball list, has yet discount Prozac be signed. His shocking absence from any team's roster jives with sports fans concerned about his reputation as a chemistry killer. Others question if the 44 year old Fluvoxamine bat has fallen victim to one of baseball dirtiest and most secretive practices, collusion.

Earlier this season, the uncharacteristic actions of management prompted player's association chief Donald Fehr to say he would be looking into the matter as part of his annual free-agency review. Major League Baseball's collective bargaining agreement explicitly states that "Players shall not act in concert with other players and clubs shall not act in concert with other clubs." When acting together, collusion amongst the conference call rates can unofficially ban players - as has been alleged in the Bonds case - or collectively drive down the value of the salaries paid to players on the free-agent market.

The idea of collusion is not without precedent in baseball. One of the league's most famous cases was in 1985, when the owners collectively agreed not to pursue free agents from other ball clubs - claiming they individually decided to be more "fiscally responsible". The outcome: all 29 free agents that off-season were forced to re-sign with their former teams. Of those players, just one, Carlton Fisk, agreed to what was termed a true "bona fide" offer. The case was brought to arbitration and the owners were ordered to pay the players a penalty of $280 million.

The recent change in atmosphere throughout the free agent market has come under heavy scrutiny. For example, in recent years, successful veteran pitchers have been signing incredibly lucrative long-term deals. In 2005, Kevin Millwood signed with the rangers for $60 million over five years. In 2006 Esteban Loaiza cashed in for $21 million over three years, and most recently Barry Zito signed a seven year deal for $126 million in 2007. The list goes on, but clearly quality pitching has been a lock to pull the big contract in the recent market.

However, in this 32nd winter of free agency, similar veteran pitchers are not inking the same caliber multi-year deals. Randy Wolf signed for one year at $4.75 million while solid veterans Kenny Rogers and Tom Glavine both signed contracts spanning just one year for $8 million.

"It's a highly irregular situation to see veteran pitchers who are out there and only one American pitcher got a multiyear contract," player agent Scott Boras told the New York Times.

It seems clear that teams are just not spending like they used to. Optimists would no doubt write this newfound frugality off to the proverbial bubble bursting on player values. Mediocre talent is being recognized as such, and salary inflation is finally undergoing a bit of self-correction. Isn't that a possibility too?

Certainly it is, but this cannot explain the Barry Bonds enigma. There is absolutely no doubt that many clubs, especially in the American League, could benefit from having a powerful left-handed bat like Bonds' in their lineup. Last season, the three-time most valuable player hit .276 with 28 homers, 66 RBIs and drew a major league-leading 132 walks. He made $19.3 million. Bonds has made it clear he wants to play, and he would do so for less than that kind of money. He will put fans in the seats, and he will produce. Many fans from many teams are left wondering: what's the holdup?

But, fans aren't the only ones questioning their teams' agendas. Even team officials have made public statements regarding Bonds' services, like St. Louis Cardinals manager Tony La Russa. His call for the Cards to sign Bonds was promptly shot down by management. The Tampa Bay Rays also held internal discussions about making a play for Bonds, according to the St. Petersburg Times. So far no club has made an offer for the slugger, raising suspicions that there Alabama Lemon Laws be more at play than meets the eye.

As the investigations into these most recent allegations of collusion continue in this age of celebrity, reality TV, Senate hearings, and probes more answers are sure to come. Maybe teams just aren't willing to spend like they used to or maybe there is a big, closed door behind which illegal activities are taking place.

For now, the buck is stopping here.

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